A BUSINESSMAN claims a U-turn by council chiefs has cost him £10,000 - and a potential property sale.

Two-and-a-half years ago, Middlesbrough Mayor Ray Mallon said the Empire nightclub - a former music hall, next door to the town hall - could play a key role in his vision of a vibrant town centre culture and economy.

Feasibility studies were carried out on behalf of Middlesbrough Council, whose executive will scrap the idea at a meeting tomorrow.

Barry Faulkner, the Empire's owner, claims he held back from spending money on the nightclub because he had been told the council would revamp the premises should the local authority decide to buy.

Just as he learnt the council was dropping its plans for the Empire, Cleveland Fire Brigade carried out a two-day inspection of the premises and found various faults.

"I have had plasterers and joiners in and it has cost me £10,000, on minor replacements, doing what the brigade says needs to be done," said Mr Faulkner.

"I am very bitter about it. I have had a lot of people coming in and out of here for the council over the last two-and-a-half years.

"I can't believe this. There has not even been a phone call.

"The council has not so much as said they were not buying it. I had to read that in the local paper. I feel let down."

Councillor David Budd, Middlesbrough Council's executive member for regeneration, said yesterday: "The council's executive will be discussing this issue this week. At the moment, we feel we cannot buy the Empire because it is simply too expensive.

"If, at some time in the future, circumstances change, we can reconsider the issue. We are sorry Mr Faulkner is disappointed but we would stress we have kept him informed of developments throughout this process.''

Meanwhile, there is opposition from local residents, a community council and Cleveland Police to plans by Mr Faulkner to turn the old Cleveland Scientific Institute, in Corporation Road, into a nightclub.

An application for a licence will be considered today, by Middlesbrough Council whose policy is to only grant new licences in "exceptional circumstances'', because of a saturation of licensed premises in the town centre.